Start With Great Financial Goals This Year
Setting goals in life is the first most important step toward moving ahead!
Time and time again it’s been shown that people with written goals are more successful when it comes to reaching their goals than those who don’t take the time to write them down.
You want to be successful financially. We all do! It’s worth the time investment and effort to write down your financial goals. Begin today to think about and write down your own personal financial goals and then set out to achieve them.
Here is a smart place to start. It’s been said that nothing can be improved that cannot be measured. For this reason, the first financial goals that we’ll look at today have to do with measuring and improving you financial habits. Take a look.
Write Out Your Budget Each Month
This may seem like a simple goal, but writing a spending plan each month is the first step in getting control of your finances. If you can write out your budget each month, and put every dollar you earn in a specific place you will begin to win financially. This helps you realize just where you are each month. It allows you to decide how you want to spend your money instead of just letting it drift away.
Write Down Every Penny You Spend
You should do this for the entire year. The first month, you may want to physically write down each purchase you make in a notebook that you carry with you. Sometimes physically writing it out makes you more aware of what you are doing. If you have a smart phone, you should find a budgeting app that allows you to enter in each transaction as you make it. You can record it in both the account and the category so you can stick to your budget and recognize your budgeting weaknesses.
Reduce Your Debt
Make a specific goal on how much debt you want to get rid of this year. If possible, you should try to get completely out of debt, but depending on your income and the amount of debt you currently have, you may not be able to do that. You should set a goal that is attainable, but one that you will have to be careful to reach. Set a number of how much extra you want to put towards debt each month, and then work to reaching it. If you follow a debt payment plan, you will speed up how quickly you can pay off your debt. – The Balance
These Two Financial Goals Will Make Your Life Better!
Some goals have to do with day to day behavior, like those we just discussed relating to your budget. Other goals have more to do with your personal financial mindset and the position that mindset allows you to achieve.
Here is a look at two important financial goals that relate to your mindset and position financially. Take these two goals seriously and make them your own and you will find your own peace of mind will soar!
Have a Well-Stocked Emergency Fund
We normally think of having an emergency fund as being a short-term financial goal. And from a mechanical standpoint, that’s true. However, an emergency fund has important long-term benefits, which is why it’s one of the good financial goals that you should plan to achieve.
Here are just some of the benefits that a well-stocked emergency fund can provide you with throughout your life:
It can take away a lot of the money worries that you have, since you know that you will always have a reserve should you get into a tight spot
As is expected of an emergency fund, it will be there to cushion the blow in the event of a sudden emergency, such as a job loss or a large medical expense
It’s an important money management tool – if you can save money for an emergency fund, then you can save money for any financial goal that you have
It provides you with an intermediate funding source – a kind of halfway point between your paycheck and your investment accounts – that you can use so that you don’t have to disturb your long-term investments
Just having an emergency fund will make the wide swings in the stock market more emotionally tolerable, knowing that your survival isn’t at stake when the market falls
For us, having an adequate emergency fund has offered reassurance in many life situations. Most notably was having our first son, building our dream home and starting my own investment firm.
When you consider all that comes from having a strong emergency fund, it should move it up the priority ladder a few rungs…
…Be Able to Live on Less Than You Earn – No Matter What
I’ve covered this topic in other articles, but it is well worth repeating here since it is one of the most necessary of all good financial goals. By learning to live on less than you earn – no matter what – you will always have plenty of income. That means that you’ll have plenty of income for savings, investments, and for paying off debt.
It’s important to always be on the hunt to increase your income. But that strategy will only be effective to the degree that you are able to live on less than you earn, so that you can put the difference to better use to improve your life.
Do you have written personal financial goals?